7:53 SourceForge download page views were down 16% at 197M. Our monthly unique visitors were 45.6 million down 8%

8:44 R&D expenses were up 93% (primarily due to investments in GeekLabs and Media engineering)

8:51 We ended the quarter with cash and investments of $32.5M* (actually $38.5M*)

*9:21 One last comment about cash, as we disclosed previously, after the quarter ended (Apr 4) Geeknet sold its Pfd stock investment in Collabnet to a 3rd party for $6 million. The carrying value at the time of the sale was $2M and therefore a gain of $4M will be recognized as other income in the 2nd q of 2012...Note: gnulaw exclusively followed and broke the news with this PFD stock investment and sale

4. Langone should promote Drobick to CEO of GKNT (including ThinkGeek) and step down as CEO, at the latest, contemporaneous with Q2 2012 earnings releas, remaining Chairman. Shareholder value will accordingly become fully valued.

Langone has unequivocally turned this company into a cluster****(.) Insider open market share acquisitions at this point should not be recognized as a bullish signal but alleged stock fraud for obvious reasons.

4. GKNT In Play - 7:01AM Geeknet announces plans to conduct review of strategic alternatives for online media business (GKNT) 13.16 : Co announced that its Board of Directors has authorized the Company and its advisors to explore strategic alternatives with respect to its online media business, including the SourceForge, Slashdot and Freecode websites. The Company and its advisors will evaluate a range of options to maximize shareholder value, including, but not limited to, a potential sale of the Company's online media business, investing additional capital to expand the online media business, or other possible transactions involving the online media business. (stock halted, to resume trading at 7:30)

On May 9th, the day before GKNTs annual shareholder meeting, and two days before their announcement to divest the Media division, the following (> $300,000) Options (Table I) were exercised by the Board of Directors at a cost of $0. GKNT filed these SEC Form 4s after the market close on Friday May 11th buried in the aftermath of their divestiture aka their specific performance failure to monetize GKNT Media properties after four years, and significantly, before they were losing monthly unique visitors and downloads (SourceForge) (comment #1 above).

Q: Why did GKNT wait until after market close on Friday?

A: Alleged consistent patterns.

Table I. Option Awards Exercised on May 9th, the day before the Annual Shareholder Meeting, and filed after Market Close Friday May 11.

Common symptoms are taking over a microcap Company (under $100 million market cap) and immediately destroying shareholder value driving the company's stock to threaten delisting and then declare an extreme stock-split e.g. 1:10. The patient's behavior would include building a preposterously huge Board of Directors ( >= 10 ), [with the intent to] take control, and consistently issue massive shares options not based on performance to said "partners" and consistently while the Company suffered continuing losses. The megalomania would include announcing putting, at least, part of the company in play * contemporaneous with insiders accumulating shares during said alleged blackout period.

Just after Q3 ended Slashdot (Alexa world ranking 1,775) nemesis Digg (Alexa world ranking 194) announced they sold as an asset sale for $500,000.00 .Wow! To exacerbate that GKNT announced today "...Media (slashdot, sourceforge...) revenue decreased 8 percentto $5.3 million for the second quarter of 2012, compared to $5.8 million for the second quarter of 2011...". [emphasis added]. GKNT announced May 11, 2012 "...Plans to Conduct Review of Strategic Alternatives for Online Media Business...".

That makes slashdot and SourceForge worth about $1.42. SourceForge was a victim of the same management negligence as slashdot seeing sourceforge simply slashdotted by github.

So...GKNT lost $2.4M from Operations Q2 ending June 30 2012 also citing "...Adjusted EBITDA for the second quarter of 2012 includes a $210,000 charge against inventory related to the voluntary removal of a product from the ThinkGeek site following a Consumer Product Safety Commission complaint against the manufacturer..." Buckyball was one of the lead items Thinkgeek prominently advertised at thinkgeek.com throughout 2011 into XMAS 2011 and into 2012. Yesterday the press had this to say about Buckyballs. And we know what the Chairman and CEO of GKNT thinks about this Presidency.